24-hour uninterrupted trading, Bybit, Robinhood, Kraken started on the same day, and the tokenization of US stocks is coming

Source: Wall Street News

The boundaries between the traditional stock market and the cryptocurrency world are accelerating.


The tokenization of US stocks ushered in an unprecedented concentrated outbreak. On June 30, American online broker Robinhood, along with well-known crypto trading platforms Bybit and Kraken, announced the launch of US stock tokenization services on the same day, providing users with a 7×24-hour uninterrupted stock trading experience.

According to Reuters, Robinhood announced on Monday that it would launch a stock token trading service based on the Arbitrum network for EU users, supporting more than 200 U.S. stock and ETF transactions, including Nvidia, Apple and Microsoft. On the same day, Bybit and Kraken launched the "xStocks" (stock tokenization) product provided by Swiss compliant asset tokenization platform Backed Finance, covering about 60 stocks and ETF tokens.

"xStocks represents a huge leap in democratizing access to financial markets," said Adam Levi, co-founder of Backed Finance.

By introducing familiar assets into blockchain with unprecedented accessibility, we are not only connecting traditional finance and DeFi, but also building the foundation for a truly open, efficient and inclusive global financial system.

These tokenized stocks are supported 1:1 by real stocks and support 24/7 trading. Robinhood's service is 24 hours a week, with plans to eventually expand to 7 days and 24 hours.

Driven by this news, Robinhood's stock price hit an all-time high, with an increase of nearly 10%. The company executives also said it plans to launch tokens pegged to private company stocks, starting with Sam Altman's OpenAI and Musk's SpaceX.

**Three Major Platforms Showcase Distinct Approaches with Clear Technical Divergence**  

Mainstream crypto trading platforms are adopting different models for their U.S. stock trading solutions.  

Crypto exchanges **Bybit** and **Kraken** act as matching platforms, leveraging a **third-party issuance model**. They integrate tokens issued by **Backed Finance**, deployed on the **Solana blockchain** to enable on-chain transfers and DeFi integration. Users can trade **24/7** and enjoy corresponding economic benefits (e.g., dividends). Compliance responsibilities primarily fall on the issuer, while the exchanges themselves typically do not hold securities licenses and often exclude U.S. users.  

**Robinhood**, in contrast, has opted for a **licensed brokerage self-built blockchain approach**. It directly issues stock tokens on the **Arbitrum network** while custodying the underlying assets. According to Reuters, Robinhood plans to launch its own **Layer 2 blockchain, Robinhood Chain**, to achieve end-to-end on-chain integration for issuance, clearing, and settlement.  

Robinhood’s CEO stated at a France-themed event, **“Tokenization will spark a revolution in mass-market trading.”** The company aims to expand its tokenized stock offerings to **“thousands”** by year-end and gradually enable **24/7 trading**.  

### **Regulatory Clarity Fuels Resurgence of Stock Tokenization**  

As previously reported by Wall Street Journal, stock tokenization briefly gained traction on platforms like **Mirror Protocol** but faded due to regulatory and market volatility. Now, with the advancement of **Real World Asset (RWA) regulatory frameworks**, traditional financial institutions like **BlackRock** and crypto firms are actively lobbying regulators.  

Following Trump’s election, U.S. crypto regulations have gradually relaxed, potentially making **tokenized U.S. stocks a major trend**.  

A **Guosheng Securities** report reveals that **Coinbase** is seeking SEC approval to offer tokenized stock trading. According to **CoinDesk**, the company has submitted a pilot application. If granted a no-action letter or exemption, Coinbase could become one of the first **fully compliant platforms** to launch tokenized U.S. stock services.  

### **Experts: Tokenized Stocks Could Reshape Securities Investment**  

Per **Reuters**, experts believe tokenized stocks could **fundamentally transform securities investing**. Combining traditional finance with crypto trading features, they appeal to global investors due to **better market access, flexible trading hours, and lower costs**.  

Tokenized U.S. stocks not only expand crypto investors’ asset allocation options but could also become a **key use case for stablecoins**. As **on-chain "fiat"**, stablecoins serve as infrastructure tools in tokenized stock trading.  

Guosheng Securities estimates that the **sheer size of the U.S. stock market** could rapidly drive stablecoin demand.  

### **A $2 Trillion Market by 2030?**  

McKinsey predicts that the market for **tokenizing real-world financial assets** could reach **$2 trillion by 2030**. Currently, simpler assets like **U.S. Treasuries** have seen notable success, with **Securitize** and **Ondo** leading a market already worth **billions**.  

Trump’s election has raised expectations for **friendlier regulations**. SEC Crypto Lead **Hester Peirce** recently endorsed tokenization, suggesting a **“regulatory sandbox”** to let innovators test new models under relaxed rules.  

**Wyatt Lonergan (VanEck Ventures)** noted that crypto-native investors **“want the safety of assets like Apple stock within their digital ecosystem”**, especially during crypto market volatility. However, for mainstream U.S. investors, **fractional shares and T+1 settlement are already standard**, raising questions about **whether scalable demand truly exists**.  

### **Challenges Remain for Tokenized Stocks**  

Despite the optimism, **regulatory ambiguity** persists. A **Bloomberg (June 27)** report highlights that most tokenized stock services are launching **outside the U.S.** due to unclear rules.  

**Bryan Routledge (CMU Tepper School of Business)** warns: **“You’re changing how trading works, not just the asset format.”** He predicts this will **compete with the entire exchange and broker ecosystem**.  

Per **RWA.xyz**, the current **tokenized stock market is just $388M**—a drop in the ocean compared to **global equities’ $120T+**.  

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